More People Set To Move Into Private Rented Accommodation

In less than five years' time, 17% of households will live in privately rented accommodation, it has been predicted.

The proportion would be up from 14% at present, according to Capital Economics.

The proportion of households in private rental accommodation has been growing steadily, after standing at 10% in 2001.

Ed Stansfield, chief property economist at Capital Economics, said: `Over the next three to five years, we think the most likely scenario is that the private rented sector will continue to expand. By 2015, it is plausible that 16% or even 17% of households will live in privately rented accommodation.`

He said the boom in tenancy demand was driven by students, immigrants and a rise in those squeezed out by property ownership.

He said it could be several years before house prices fall back to levels which makes home ownership a realistic option for many.

He also cited public spending cuts as increasing the number of tenants, as it would create more disadvantaged households whilst also reducing the provision of social housing